HomeMy WebLinkAbout1996-225J \WPDOCS\ORD\ERCOT ORD
ORDINANCE NO. 9�(��'"
AN ORDINANCE APPROVING AND AUTHORIZING THE MAYOR OF THE CITY OF
DENTON, TEXAS TO EXECUTE AN ELECTRIC RELIABILITY COUNCIL OF TEXAS,
INC. MEMBERSHIP/FUNDING AGREEMENT, BETWEEN THE ELECTRIC RELIABILITY
COUNCIL OF TEXAS, INC. AND THE CITY OF DENTON, TEXAS; AUTHORIZING
THE EXPENDITURE OF FUNDS THEREFOR; RESOLVING OTHER MATTERS
INCIDENTAL AND RELATED THERETO; AND PROVIDING AN EFFECTIVE DATE.
WHEREAS, the City of Denton, Texas has been a member of the
Electric Reliability Council of Texas, Inc. ("ERCOT") since 1969.
ERCOT is a Texas non-profit corporation formed for the purpose of
promoting the reliable operation of power systems; generally by
exchanging information concerning the planning and operation of
generation, transmission and distribution facilities; and
WHEREAS, on September 12, 1996, the membership of ERCOT voted
to adopt proposed changes in the ERCOT Articles of Incorporation
and Bylaws that require existing members to complete a new
application for membership, in the form of an Electric Reliability
Council of Texas, Inc. Membership/Funding Agreement (the "Agree-
ment"). ERGOT at that time made dramatic charges relative to its
member voting and the funding of its operations; and
WHEREAS, the City of Denton derives substantial benefit and
advantage from its continued membership in ERGOT; and
\ WHEREAS, the City desires to continue its membership in ERCOT
and accordingly desires to approve the Agreement as presented to
the City Council at the meeting at which this Resolution is
considered; NOW THEREFORE,
THE COUNCIL OF THE CITY OF DENTON HEREBY ORDAINS:
SECTION I. That the Electric Reliability Council of Texas,
Inc., Membership/Funding Agreement, a copy of which is attached
hereto as Exhibit "A" and incorporated herein for all purposes,
between ERCOT and the City of Denton, is hereby approved in
substantially the form and content as set forth in Exhibit A, and
that the Mayor is authorized to execute the same.
SECTION II. That the expenditure of funds as authorized in the
agreement is hereby authorized.
SECTION III. That this ordinance shall become effective
immediately upon its passage and approval.
PASSED AND APPROVED this the / 0 day of 00 &Z, 1996.
JACK LLER, MAYOR
ATTEST:
JENNIFER WALTERS, CITY SECRETARY
BY:
APPR ED AS TO LEGAL FORM:
HERBERT L. PROUTY, CITY ATTORNEY
ELECMEMBEnZIPI/FUNDING AGREEMENTS, INC.
This Agreement is made, entered into, and affective this day of _
199_ by
and between Electric Reliability Council of Texas, Inc (hereafter "ERCOT') and
(hereafter called "Member"), whose address is
In consideration of
_ ---- _— —
that Member shall be eligible for
the mutual covenants contained herein, the parties hereby agree
membership status in ERCOT subject to the following terms and conditions
OT
open
l Member-ship
definitions esetip in forth intheBylawstAany
corporation which
or o her legal
of the market group
business entity may apply for membership through an authorized officer or agora
2 Furuling ERCOT shall be funded by all wholesale market
tcipants in the
(ti) Electronic
form of (I) annual fees levied against voting and nonvoting
by
t
Transmission Information Network ("E9 TIN'access fees, (iii) unplanned tr to time fees,
and (lv) load ratio share allocations, all of which will be fixed from time to tby the
Board of Directors in accordance with the provisions set forth in the Bylawe
8 Voting and Non Votuig Membership Feeb The iinitial
l voting
yeah a be ship fee
voting os
$10,000 per year and the nonvoting membership fee is
nonvoting membership fee for the first Year of membership shall be paid upon execution of
this Agreement. Thereafter, membership fees will be billed annually and shall be paid
within thirty (80) days following receipt of a statement, or as otherwise prescribed by the
Bylaws.
q ETIN Access Pee. The initial ETIN access fee is $1o,000 per year for each
required site License Subscribers who, for legal or other reasons, are either required to or
desire to maintain multiple sites, will pay an access fee of $10,000 per site The access fee
shall be payable in twelve (12) equal monthly installments, the first of which shall be made
upon execution of this Agreement. Read-only access will be available pursuant to
applicable FERC guidelines. It is intended that the ETIN shall, to the maximum extent
practicable, be self -funding, and it to not Intended that ETIN access fees will subsidize
other ERCOT operations Therefore, if, as, and when paid -in ETIN access fees exceed the
annual ETIN budget during any fiscal year, monthly ETIN access fees for the remainder of
r reduced an
that fiscal year may, in the Board of Directors' sole dtseeret� oI temporaryt
a feeoreductt n or
prorata basis (licensees who subscribe dui isa P f
elimination will pay a prorated access fee consisttent with fees paid by current subscribers)
b Unplanned Transaction Fee An unplanned transaction fee of 16 cents ($0 15)
per megawatt hour shall be assessed against all unplanned transactions Unplanned
transactions are defined as any unplanned transactions except utility purchases of non -
firm power (as that term is used in PVC Rule 28.66) from qualifying facilities At the time
an unplanned transaction is scheduled, the parties to the transaction shall advise the
Independent
ndepenthe operator
SO) of fee the name of the party having responsibility for
payment
6 Load Ratio Share Allocations In addition to the foregoing fees and charges,
funding shall also be provided by utilities in the form of load ratio share allocations Such
payments will initially be responsible for funding that portion of the Board -approved
budget that is not collected through the fees described in paragraphs 3, d, and 5 above All
unplanned transaction fees up to, but not exceeding, ono -third of the annual Board -
approved budget shall be credited back to the utilities on a load ratio share basis as an
offset to the utilities' load ratio share allocations Unplanned transaction fees exceeding
one-third of the budget will be allocated between credits to the utilities (80 percent on a
load ratio share basis) and the ET1N budget (80 percent).
le
Getting the
7 e e�tges ETItt, Fees N access fees, unplanrd ofedetransaction ctors will efees, and bload rratio share
membership f raise or lower the fees and charges at any time, subject to the
allocations, and mayh Increases or decreases M
rearms effective forth
as to all Members with the necessity of amending this Agreementatdea y
8 Applicaholi for Membership The applying entity will submit the following
items with the application for membership- (1) a completed membership application form;
and (ii) payment of the voting or nonvoting membership fees for the first year of
membership. Upon approval of the application, the Secretary will promptly notify the
applicant of the same and will Issue a certificate of membership on which the name of the
designated representative of the Member will be stated.
8. Change of Desigitated Representative A member may change its representative
at any time by written request (signed by a duly authorized representative of the Member) to
the Secretary.
10 Billing Dues and fees assessed and charges incurred by a Member shall be
billed to the Member
11 Suspenston and Expulsion Any Member who willfully violates any provision of
this Agreement, the Bylaws, or any other rule or regulation duly adopted by the Board of
Directorei may be
or expelled by vote of
reprimanded,
of
Directors. Such action will affect all persons deriving membership privilegesthrouuogh such
Member.
lE Amendment This Agreement may be amended, modified, superseded,
hereofcanceled, renewed, or extended and the terms and conditions
a written instrument executed by both parties hereto or, In he case of a waiver, by he party
waiving compliance.
IN WITNESS WHEREOF, the parties have caused this Agreement to be executed as of the
day and year first written above
ELECTRIC RELIABILITY COUNCIL OF TEXAS, (Company)
INC
By By
Title Executive Director
Title